When it comes to enterprises, quality should always be the prime focus over quantity.
Quality plays an integral role in creating the brand image and reputation of any given company or organization.
Developing products in quantity should never be the main motive of an enterprise, but they should always focus on developing quality products for their users. And to improve the process efficiency, the enterprise should regularly monitor its performance and make changes to improve it.
Looking at the present, enterprises are growing at a tremendous pace, primarily due to digitalization. Keeping a tab on the performance of such enterprises on a regular basis is becoming very hard, and there is a dire need for an autonomous system to take care of such tasks. This is where SAP EPM (Enterprise Performance Management) comes into play.
SAP EPM is a tool that helps enterprises make proper reforms to improve a company’s performance. The application uses analytical solutions, integrated into the SAP S/4 HANA framework.
This piece walks you through a detailed discussion on ERP under the subsequent subtopics.
What is SAP EPM?
SAP EPM is a system that monitors the performance of an enterprise and provides insight that can be used to improve the condition of a business. The platform collects data from multiple sources and analyzes them, to determine a cost-effective and efficient way of delivering similar or better results. It collects data from sources like data warehouses, accounts, front office, and e-commerce systems, among several others. The primary duty of the EPM is to connect resources with the company’s product requirements and make reforms to meet such standards.
Enterprise Performance Management is the market leader when it comes to EPM services. SAP EPM helps enterprises convey efficient financial planning, accurate market forecasting, profitability model development, and improved precision of managerial reports. SAP EPM is a suite of other tools like SAP Business Planning and Consolidation, SAP Financial Consolidation, SAP Disclosure Management, and many more.
SAP Enterprise Performance Management Capabilities:
SAP Enterprise Performance Management is a powerful tool that is important for improving the performance of any enterprise by providing a proper understanding of the company’s day-to-day performance. Some of its unique capabilities are mentioned below:
- SAP Strategy Management – This helps the enterprise make fast and accurate decisions based on the analyzed data, and everyone can have viewing access to the performance scorecard.
- Planning, budgeting, and forecasting – The BPC software is a part of SAP EPM and is used for planning and budgeting for the enterprise. Apart from this, they are also used for using the previously collected data to make forecasts about the company’s forecast in the coming times.
- Profitability Analysis and Cost Management – SAP Enterprise Performance Management system provides profitability analysis for unforeseen events that might happen and helps the enterprise make rational decisions during those times.
- Business Intelligence – This helps provide visualization of the company’s current performance, including data like the company’s financial condition, the amount of inventory they have, how sales have been in the past months, and what the sale can be like in the coming days.
- Uses a single Source of Data – Multiple forms of data are collected from trusted sources to ensure that the analysis is accurate and can be relied upon. This decreases the time and effort that is needed to make profit and loss planning’s. Due to the enhanced quality of the data, the Sales and Operational planning can be easily integrated into the existing planning process.
Designing the EPM Foundation:
Every enterprise differs from one another, and similarly, the EPM foundation should also not be the same for every business. To get the most out of SAP EPM, the financial leaders will have to design strategies that will be best suited for their enterprise. And a proper design can be made by keeping the following points in mind.
- Process – When enterprises grow in size, it becomes tough to maintain a uniform standard throughout the enterprise, and that is when problems arise. These inefficiencies can be eliminated by working as a connected system and re-engineering processes to get the best results.
- Technology – The appropriate technology takes the benefit of an effective process to the next level. Cloud-based EPMs help a lot in real-time data monitoring, data consolidating, and integration of different systems. Modern technologies like AI and Machine Learning make the prediction and forecasting model much more accurate and suggest better performance reforms.
- Data and Analytics – Companies often generate a large of data, and most of them do not know how to put these data to use. For Enterprise Performance Management to work correctly, there is a need for efficient consolidating, cleaning, storing, and modeling of financial data. Using the tools available in SAP EPM, large volumes of data can be analyzed easily using robust analytics, providing rigid insights that are even better than most predictive models.
Maintaining quality in a large enterprise can be a highly complex process. This is why most enterprises have automatic systems like SAP EPM, which manages all the incoming financial data and analyzes them to provide valuable insights and forecasts. SAP implementation companies benefit a lot from this business tool because it can be integrated with the existing SAP S/4 HANA cloud framework for better performance and real-time analysis.